Working Families Flexibility Act of 2025

The Working Families Flexibility Act of 2025 allows private sector employees to earn time off instead of cash for overtime hours, at a rate of 1.5 hours of time off for every hour of overtime worked. To qualify, employees must have worked at least 1,000 hours for their employer in the prior 12 months, and agreements for time off must be voluntary, in writing, and not tied to employment conditions. Employers must pay cash for unused time off by January 31 each year (or another agreed 12-month period), with a cap of 160 hours of accrued time. The bill excludes public employees, includes enforcement provisions for violations, and expires 5 years after enactment.